Document digitization by DMS: shifting to better logistics data management

Logistics companies rely on electronic document management systems (DMS) to streamline workflows across the supply chain. Key features like digital storage, automated invoicing, and proof of delivery are essential for major players like DHL or FedEx. These systems reduce paperwork, cut costs, minimize errors, and improve process efficiency, making them vital for modern logistics operations.

Despite advancements, many logistics processes still depend on physical paperwork, including critical shipping documents like the Bill of Lading, which is required in up to 40% of trade transactions. This reliance hinders using digital document processing and full digital transformation. Companies often delay the shift due to integration challenges and the complexity of modern business operations, leaving many systems only partially digitized.

Document digitization remains a critical focus in logistics and supply chain management. This article explores the challenges and opportunities in adopting digital processes, highlighting the importance of integrating existing systems to enhance efficiency and stay competitive in the evolving landscape of international logistics.

Main transportation segments and document management

Talking about document digitization, we briefly examine the relative significance of various modes of supply chain transport and their impact on the flow of transportation and logistics documents. There is no doubt that this is the area where the seamless movement of business documents plays a crucial role. We now have several segments of transportation that are crucial for domestic economies and are vital to keeping flexibility across various supply chain channels:

Maritime transport

Documents in maritime depend on three parties. Each party creates a document source that helps control the transport through the sea, ocean, and even freight transport on inland waterways, such as rivers or canals. These parties are: 

Shipping lines

Shipping lines are the owners and operators of the various types of vessels in their fleets. Their primary role is to provide the physical resources necessary to transport cargo safely and efficiently by waterways. You may be already dealing with them in your daily communication and have already received several emails with outstanding PDF scanned documents, such as certificates of origin (COO), waybills, and others.

Ship agents

Ship agents offer essential services to shipping lines in ports of call. These agents perform a wide range of critical tasks for the supply chain on behalf of the shipping lines, which also involve handling crucial documents. They might be interested in custom procedures, feeding your Operations Support Group department with Customs documents and invoices. 

Freight forwarders

Freight forwarders, also known as transport management companies, oversee the entire freight journey from start to end. They provide end-to-end solutions for the supply chain. They handle documents, coordinate modes of transport, manage customs processes, and organize port services. They may help you connect more than one way of shipping goods and will provide you with tons of various shipping documents. 

An excellent example of maritime transport is all that happens in the Port of Antwerp-Bruges in Belgium, one of the largest in Europe. This port unquestionably handles a large number of container shipments via vessels that are shipped through the various waterways. The Port of Antwerp-Bruges in Belgium is also an excellent example of supply chain models that underpin logistics shipping operations worldwide. These shipping operations generate a substantial volume of documents, often transmitted from one vessel to other ports and vice versa, by using typical USB memory sticks passed among seafarers.

So, at this point, there's a significant reliance on digitally scanned documents stored on these types of hardware, but maritime transport often still relies on paper documents. What directly helps in handling this process are document management system solutions, especially those dedicated to transportation. Summarizing this paragraph, we can conclude that no matter which transport mode you choose within your supply chain, with DMS scanning software, you'll have all-in-one access to your transportation scanned documents in one place. You can also minimize the risk of document loss by passing them in paper format, as is mentioned only on USB memory sticks.

Air transport

Opposite to maritime transport, air freight involves distinctly different legal regulations based on the various types of aircraft, from airplanes to helicopters, each requiring specific documents. Most of today's regulations are overseen by the International Air Transport Association (IATA), which also enforces strict laws regarding the transportation of dangerous goods (DGR). Similar to maritime transport, air freight involves three major parties in the document flow that need to be exchanged among supply chain stakeholders:

Airlines

In the case of airlines, it's about companies that own and operate aircraft for passenger and cargo transport. They specialize in services such as low-cost supply chain operations or air freight. This specialization also gives rise to a multitude of documents exchanged between ground personnel at the airport and beyond. Eventually, these documents, such as Bills of Lading, can end up on your desk in your warehouse. Everything is highly interconnected.

Cargo agents

Cargo agents, licensed by IATA, handle airfreight on behalf of clients. They must comply with IATA standards, maintain insurance, and issue airway bills (HAWBs) and other transport and logistics documents. The challenge with IATA regulations is that they change annually. Your personnel needs to stay updated to avoid mistakes on documents, often requiring them to check the 1,000-page IATA regulation book necessary for labeling shipments. Simply put, air freight shipments entail a multitude of documents, which pass from hand to hand throughout the supply chain operation cycle.

Airport authorities scanning

Airport authorities are the owners and operators of airport infrastructure, which also involves a substantial volume of documents that must be provided to air carriers. These documents include information on how cargo is stored before it is loaded onto an aircraft. Logistics personnel on the ground need to know what they are dealing with before loading cargo and what to do once the shipment arrives at its destination airport.

Regarding air freight, the quality of service must be the highest priority. It's all about avoiding compliance with transportation rules. Therefore, it is crucial to provide the highest quality of documents when they pass from one party to another, especially for hazardous cargo (DGR). To prevent plane crashes like the case of UPS Airlines Flight 6 on September 3, 2010, caused by an onboard fire, it's evident that exchanging high-quality documents among key parties in the supply chain and logistics is essential for ensuring cargo and people's safety.

The world's largest airports, such as Denver International Airport (DEN), handle approximately 235,611 metric tons per year, directly highlighting the significance of a streamlined scanning documents flow. This is a huge amount of paperwork for logistics personnel who operate in warehouses on airport premises or coordinate deliveries from outside locations. The solution to these challenges lies in professional digital document quality management software, which unquestionably secures the entire document scanning flow with high-quality data. This solution is not exclusive to air freight, good quality DMS software can be applied in any industry where top-quality data on shipments is essential to avoid costly issues.

Rail and intermodal transport document scanning

Rail transport for the cargo combines different intermodal equipment that is selected regarding cargo requirements. There are a variety of independent standard documents that can be used directly for transportation purposes, and the type of modal transport can provide a basis for drawing up a new record. Most of the shipments for this transport are handled in containers or by trailers, which are later replaced on the trucks in the road transport. All that depends on supply chain planning. Here are two elements that are important for this kind of transport, these are included as follows: 

International intermodal terminals

These are key road-rail interchange points within the rail industry dedicated to cargo.  They often include warehouses, distribution companies, and consolidation services for general cargo and freight. This forms an interconnected network coordinated by supply chain operations. Documents flow significantly as these terminals are connected to ports and road freight, resulting in various documents for various transport purposes.

Rail transport

Carriers that provide rail transport utilize public rail infrastructure for various transport modes and cargo available through the supply chain. This includes cargo in enclosed boxcars, refrigerated wagons, flat wagons, tankers, containers, and car transporters. Various documents come into play, specifically for stakeholders closely associated with ground freight.

Rail transportation plays a significant role in domestic economies, and in various scenarios, rail and intermodal transport offer the most efficient means of handling shipments. As intermodal transport combines both road and rail transport, this presents a significant logistics challenge. A great example is the European rail network via the Channel Tunnel. This kind of model requires a wide range of shipping and customs documents. 

There's no doubt that document scanning flow in rail transportation, using shipping documents digitalization software, can effectively remove the constraints associated with this form of transport in the supply chain. It is important to remember that this solution isn't exclusive only to rail and intermodal transportation. But below we take a look at the blockchain-based DMS system for eTEU, which we developed as a custom solution for various types of transport widely used throughout the supply chain, supporting transportation operations in many cases, such as road transportation.

Road freight transport

This form of freight transportation is the most popular, mainly because it is the final stage of handling shipments before they reach their destination in warehouses or distribution centers. Of course, road transport with trucks and trailers goes far beyond and is the core element of the supply chain. Road transportation of goods includes a variety of shipping operations dependent on logistics, with trucks and trailers as the main types of vehicles. These vehicles can transport cargo from airports and ports, carry raw materials from mines, deliver windmills to power plants, and much more. The range of shipment is highly diverse, with no limits. Nevertheless, shippers and carriers must efficiently manage documentation tailored to the specific cargo being transported. Three specific elements can affect the required documents in road transportation:

Main types of vehicle body

Choosing the right vehicle body type depends on operational and load requirements. Different body types offer unique advantages and disadvantages based on the tasks and cargo resulting from planning in the supply chain. They may also require unique documents and approvals to participate in road traffic regarding large-volume goods to transport.

Types of operation

The broad spectrum of supply chain operations matches a wide range of tasks, such as long-distance transportation involving fast delivery of heavy loads. Road trucks with multiple trailers are very common in some cases as a solution for the supply chain. Drawbar combinations offer additional cargo space for light but bulky loads. Special trailers handle medium-weight and volume loads.

Load types and characteristics

Cargo characteristics are crucial to transportation planning, where the first stage is shipping from the logistics warehouse. A shipment may contain light or bulky cargo that requires vehicles with high volume relative to their weight. Heavy loads require specialized vehicles, and mixed loads present weight distribution challenges. Valuable cargo requires secure vehicles with anti-theft features. 

Besides the aforementioned characteristics of consignments, there are also other ones, such as bulk liquids and powders, which require specialized tankers. These are mostly dangerous goods that require extra precautions to prevent chemical reactions and electrical hazards. As we've previously mentioned, in the context of air freight transport, supply chain planning must comply with transportation law, resulting in a substantial volume of documents.

There is no single example to illustrate the types of documents required in transportation and logistics, but all of them should be digitized. Adopting a document management system (DMS) for transportation and supply chain operations can revolutionize your business and how documents are handled. You can also support your truck fleet by providing real-time assistance on the road, offering all the data to your personnel whenever they need it. Digitizing documents can help you push the boundaries of your business beyond the typical problems associated with paperwork.

Document scanning software for Logistics & Transportation

Article by:

Alona Remez

Why do you need less paper documents?

As we said, manually completing shipping documents can be troublesome, and the process can outline several complicated steps. Whatever documents we need to consider, a simple typing error, missing documents, or incorrect values filled in can cause steadily increasing problems that can develop into more serious and expensive issues.

We can mention delays with unloading trucks and containers here due to incorrect shipping codes added to customs documents. In such a case, a company can receive a fine from the customs office, not to mention contractual agreement payments for delays.

We outlined actual key issues with documents on logistics and supply chain. Here are some of the primary issues associated with document-related challenges:

Missing documents

What makes work in transportation and supply chain oppressively difficult are the missed, mixed, or switched shipping documents on the pallets. Hours pass before your team can process the shipment for the warehouse stock. This is not the sole reason, but regardless of the cause of missing paperwork. In the end, everything comes back to transport administrators, who must provide document scanning copies via email or reprint them.

Unreadable documents

Unfolding other challenges in transportation and supply chain, we bring into closer focus issues related to the readability of transportation documents. How often have you seen this growing frustration when your people cannot read documents or need to rewrite data from them manually, yet they are obliged to provide fast feedback because trailers are waiting for unloading at the logistics warehouse?

Blocked finance operations

Smooth financial document flow in transportation and supply chain shortens the time to invoice. The document cycle in transport requires various confirmations, from freight invoices to ocean freight documents. The range of papers is extensive, especially about international shipping. You need them on time to get paid. 

Lack of real-time traceability

Everyday issues in logistics and supply chain are related to the lack of traceability. This results in missing packages. In many cases, it also resulted in lost pallets, which were unloaded in the wrong warehouse and ultimately led to lower customer satisfaction. Most of these problems happen when truck drivers don't have the right tools.

Lack of automated access to documents

The major problem in today's document management for the supply chain is caused by poorly located sources of information. Low access to documents or lack of integration of ERP, warehouse management system (WMS), and TMS can lead to data inconsistencies and errors and often prevent the delivery process from moving forward. Your business is frozen, and it costs a lot of money.

Also, one of the important issues with documents in the logistics and supply chain industry is that many companies are still far from getting shipping documents done right, as they don't use DMS. To help those logistics, FedEx, like many other logistics companies, has created a complete commercial invoice guideline to explain to companies how to process the completion of shipping documents.

Why do we need this? We need it because the process is so complex and, at the same time, important that your shipment can be refused only because of incorrectly filled documentation. Refusing shipments in international eCommerce shipping is common due to inaccurate customs documents and commercial invoices. This was even highlighted by Chris Hodge, a Manager from FedEx, in one of the presentations at eCommerce Berlin 2024.

Not many of you may know, but customs offices worldwide are setting up full lists of error codes that help identify certain document mismatches, duplicated records, invalid transport means, mismatches between transport numbers between DP and AT, and many others. This complexity is much broader; therefore, keeping documents accurate is crucial. This error code list would not be needed if there was more integration between customs and shippers, but this is another story.

Virtual signature for logistics and transport document management

Article by:

George Maksimenko

Starting with document digitization software 

What is the basis of document digitization? Yes, you need scanning software, but this software has its most important feature that allows you to quickly transform your paperwork into digital assets that can be freely exchanged throughout the company's departments. We're talking here about optical character recognition (OCR) for your transportation documents. 

This basic feature can use a camera to recognize pieces of text and convert them into a digital files format. Simple as it is, but you may need great scanning software developers to help you make it real, or you can just use some existing system to handle documents. This is how you can make a choice between custom software development for your documents and an off-the-shelf solution.

In many exceptions, it is easy to say, let's use something that is already on the market and has its users. But it often boils down to higher expenses and, more often, double work. What we're talking about here is that off-the-shelf software might be easy to access, maybe a bit cheaper but in most cases, it will not cover your complex business needs. 

As we mentioned above, you may need OCR functionality, proof of delivery (POD), and a virtual signature embedded as a feature of your document management system. However, off-the-shelf solutions will have simple integration problems, as virtual signature features may be missing. So your customer will not get all the data in one place. Your truck drivers will not be able to scan documents and share them with you when it's needed. That was just one of the many examples of how your life can get more complex with no custom development.

Off-the-shelf solutions can reveal many problems:

• Less control over the process

• Poor customer service when it comes to handling issues

• Lack of data security (you never know who manages your sensitive data)

• Lack of mobility (most of the services don't provide mobile apps)

• Poor traceability

What you really need before starting with document digitization in transportation and supply chain is to find experts who understand the industry from the field of software development. They will know how to integrate DMS with the right features and connect it to your existing system. Yes, that's true. Document digitization systems can be just an additional functionality to your existing systems, so you don't need to rebuild your organization and bring chaos to operations. With custom scanning software development, you can transform your business step by step, ensuring sustainable growth.

What are the features of document digitization by DMS solution?

When you've already decided to consider professional document scanning services software, it's worth knowing what kinds of features you can find. We have selected some of them right here to help you understand their value. These can turn into real gold in each industry, whether it's supply chain, logistics, transportation, or other side operations such as financials, administration, or people management.

Feature

Description

Compatibility with scanners

Scanning software is compatible with scanners and multifunctional devices, including cell phones. You can also import pre-scanned images for further processing and directly import existing TIFF and PDF files.

Batch scanning

You can scan documents in one process and set document separators with more than one file. All that in a single click.

Scanning quality control

You can enhance images with skew correction or cropping, and even much more. You can also manage documents in various ways once you need several pages banded in one document.

Document archiving

You will always save digital documents with automatic naming and archiving based on the document profile. Software supports the most common export file formats, including TIFF, PNG, JPG, BMP, and PDF. Therefore, you don't have to worry about how you'll open your document from a different device.

Annotations

No one wants the data on the documents to be incorrect. Digitizing documents software for supply chain or transportation should spot all discrepancies and help you redact essential and confidential information.

Document indexing

You really want each document to get its own tag file types for easy search and retrieval. With document digitizing software, you can profile and index all documents.

Optical character recognition (OCR)

We already mentioned that identifying and converting text content using optical character recognition is the most important feature of document scanning service. It can also help you with document search and retrieval. By using OCR technology you can minimize security risks towards manual errors.

Automatic barcode-based indexing

One feature can automate indexing and archiving using barcodes. By using the scanner, the system can read multiple values in a single barcode and transfer your document to the right folder on a server or in the cloud.

Automatic data capture

You can instantly capture valuable information from documents, PDFs, or image digital files for structured, searchable data. This means that software can recognize what kind of document you are scanning, whether it is POD, Bill of Landing, or others.

Digital signature app

Mobility with signature functions reduces paper usage and minimizes paper consumption and printing costs. Digital signatures create a unique digital fingerprint for each document, making it impossible to alter without detection. This is the solution that helps convert paper files into digital files.

Of course, there are many features, and you may not need all of them at once. It all depends on your business documents operations requirements. We have selected 5 key features of paper document scanning software to make it even easier to help you make the right choice. You can always reach out to us and learn about scanning software and document management in various industries. 

6 ultimate benefits of document digitization for transportation

Document digitization provides great benefits to a company that can simplify transportation, logistics, and supply chain operations. So, you can consider much easier what is actually relevant and added value to your transportation business. 

Here are these benefits:

1. Easy access anytime anywhere. Quick access to critical documents is essential for efficient operations. Digital document management allows you to retrieve necessary information instantly, improving decision-making and accelerating processes.

2. Significant cost reduction. Eliminating paper-based processes can reduce operational costs. Digital document management reduces printing, storage, and administrative expenses, significantly saving costs.

3. Enhanced data security. Protect sensitive information with robust security measures. Digital systems offer advanced encryption and access controls to safeguard your data from unauthorized access and potential breaches.

4. Boosted productivity. Streamline document workflows and reduce administrative burdens. Automating tasks and improving document organization can boost productivity across your entire organization.

5. Efficient data storage and retrieval. Manage large volumes of data effortlessly. Digital systems efficiently store and retrieve documents, ensuring easy access and compliance with regulations.

6. A greener logistics and sustainability. Reduce paper consumption and waste to contribute to environmental sustainability. Digital document management promotes eco-friendly practices, making your operations more sustainable.

Document scanning and digitization software: case study experience

As a leader with extensive experience developing digital solutions for logistics and supply chains, we also have a proven track record in building DMS systems. One of the examples we're highlighting today is the shipping document management platform for eTEU.

What is eTEU? It is a digital platform that streamlines document generation, editing, and transfer via an easy-to-use management system. Unlike many repository-like solutions that simply provide a space for data storage, eTEU delivers an additional layer of operational transparency and enhanced security.

The case with eTEU involved businesses that don't use the same file formats, causing their documents not to work together. This created problems, especially when multiple people, such as salespeople or carriers, were involved in shipping.

A good example is the Bill of Lading, which, according to McKinsey research, can account for 10-30% of total trade documentation costs. Switching to a digital Bill of Lading could save carriers over $6 billion annually. This was a similar case we aimed to solve for eTEU.

Here's a summary of what we did for them:

• Standardization and compliance. Ensured adherence to industry standards and regulatory requirements, particularly those set by The International Group of Protection and Indemnity Clubs.

• Blockchain integration and document processing. Implemented blockchain technology to secure data transfers, create an immutable audit trail, and speed up document exchange.

• Database migration optimization. Utilized a new tool to streamline the migration process and track database history.

• API documentation with Swagger. Enhanced API documentation accessibility for developers and machines.

• Transition to GraphQL. Accelerated front-end development and streamlined data delivery.

Overall, the solution focused on:

• Security. Protecting sensitive data through blockchain technology.

• Efficiency. Streamlining document generation, transfer, and tracking processes.

• Compliance. Adhering to industry standards and regulations.

• Scalability. Building a flexible infrastructure to accommodate future growth.

• User experience. Enhancing the user experience with a user-friendly interface and efficient workflows.

Why is it important to have document management and storage in place? In 2022 alone, 91% of logistics and supply chain companies paid fines, primarily due to the lack of a unified database for paper records. There are many more indicators, but focusing solely on this area helps us draw the right conclusions effectively.

How much does document digitization solutions for transportation cost?

That's the most important question. No one wants to spend a massive amount of money. We have evaluated the factors that validate the costs of the custom software versus off-the-shelf. Here below, you can read the cost fluctuation of custom software development and off-the-shelf, basically on the size of the business:

Medium projects

This category offers a different perspective. If you want to take your document scanning software to the next level with more features, prices can vary significantly. It may encompass more complex web applications, e-commerce platforms, or mobile scanning apps with moderate features. Prices may fall within the range of $50,000 to $250,000.

Large projects

Now, we're delving into complex software solutions at an enterprise level. These are applications and systems with advanced features that fit into this category. Prices can vary widely and often exceed $250,000, reaching into the millions. Price fluctuations often depend on factors like the number of users and whether it includes on-premises installation or other options.

Enterprise solutions

In this category, we encounter large and highly complex systems with extensive customization and integration. You may require something highly specific to your business to gain a competitive edge. Prices, in this case, can vary significantly and are typically higher than those for large projects.

Off-the-shelf solutions

This option typically comes at a lower price point, but you don't own the software, and it may not accommodate special requests. You also do not have control over your data. You share everything your company possesses with unknown parties. For a good document scanning software, prices usually range up to $1,000 for enterprise solutions. However, it's important to note that such software may not seamlessly integrate with your existing systems.

Finale takeaway

One of the most interesting trends in recent years is that small businesses and startups stand to gain the most from the ability to call in specialized help on an as-needed basis. This is a kind of norm today, and it also refers to the whole spectrum of services offered by custom software development companies to logistics and supply chains. The matter is that using digital tools for revenue growth, including boosting export capabilities for logistics companies, is on the rise. This fact is confirmed by the latest analysis made by McKinsey, where the transportation potential towards automation is about 66% on average, which is in the top 5 areas.

Looking at our material on electronic document management software, we may say that companies are also extensively gaining a competitive advantage by investing in DMS systems. Digitization and automation of document flow make logistics work smoother. It is an area where we at Adexin have truly excelled over the years. We have helped companies put together processes and make their operations seamless. Do you want to know more about it? Get in touch with us and learn how to find a partner on your digital journey.